[Federal Register Volume 87, Number 245 (Thursday, December 22, 2022)]
[Notices]
[Pages 78724-78728]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-27791]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96524; File No. SR-NYSEAMER-2022-13]


Self-Regulatory Organizations; NYSE American LLC; Notice of 
Filing and Order Granting Accelerated Approval of a Proposed Rule 
Change To Make Certain Amendments to the Preamble to Rule 9217 and To 
Add Rule 2.1210 to the Exchange's Minor Rule Violation Plan for 
Equities and Options

December 16, 2022.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on December 8, 2022, NYSE American LLC (``NYSE American'' 
or the ``Exchange'') filed with the Securities and Exchange Commission 
(the ``Commission'') the proposed rule change as described in Items I 
and II below, which Items have been prepared by the Exchange. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons and approving the proposal 
on an accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes (1) certain amendments to the preamble to 
Rule 9217; (2) to add Rule 2.1210 (Registration Requirements) of the 
Office Rules to the list of minor rule violations in Rule 9217 for both 
the equities and options markets; and (3) certain non-substantive 
clarifying changes to the list of eligible equities and options rules. 
The proposed rule change is available on the Exchange's website at 
www.nyse.com, at the principal office of the Exchange, and at the 
Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of those statements may be examined at 
the places specified in Item III below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes (1) certain amendments to the preamble to 
Rule 9217; (2) to add Rule 2.1210 (Registration Requirements) of the 
Office Rules to the list of minor rule violations in Rule 9217 for both 
the equities and options markets; and (3) certain non-substantive 
clarifying changes to the list of eligible equities and options rules.
Preamble to Rule 9217
    The preamble to current Rule 9217 consists of two paragraphs. The 
first provides that any member organization or covered person \4\ may 
be subject to a fine under Rule 9216(b) with respect to any rules 
listed therein and that the fine amounts and fine levels set forth 
therein shall apply to the fines imposed. The second paragraph provides 
that nothing in the rule requires the Exchange to impose a fine for a 
violation of any rule under the Minor Rule Plan and that if the 
Exchange determines that any violation is not minor in nature, the 
Exchange may, at its discretion, proceed under the Rule 9000 Series 
rather than under Rule 9217.
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    \4\ For purposes of the Exchange's rules, the term member 
organization encompasses both equity permit holders (ETP Holders) 
and options permit holders (ATP Holders). See Rule 1.1E(n) (ETP 
Holder ``means a member organization that has been issued an ETP''); 
Rule 900.2NY(5) (ATP Holder refers to a natural person, sole 
proprietorship, partnership, corporation, limited liability company 
or other organization, in good standing, that has been issued an 
ATP, and references to member, member organization and 86 Trinity 
Permit Holder as those terms are used in the Rules of the Exchange 
are deemed to be references to ATP Holders. ATP Holders have status 
as a ``member'' of the Exchange as that term is defined in Section 3 
of the Act). Rule 9120(g) defines covered person to mean a member, 
principal executive, approved person, registered or non-registered 
employee of a member organization or an ATP Holder, or other person 
(excluding a member organization) subject to the jurisdiction of the 
Exchange.
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    The Exchange proposes to add two additional paragraphs to the 
preamble based on the preamble to the version of Rule 9217 adopted by 
the Exchange's affiliate NYSE Arca, Inc. (``NYSE Arca'') and to reorder 
the paragraphs as subsections (a) through (d), as follows.
    The current first paragraph of the preamble to Rule 9217 would 
become new subsection (a). The text would be unchanged except that the 
Exchange would add ``, not to exceed $5,000,''

[[Page 78725]]

after fine to clarify that a minor rule fine on the Exchange cannot 
exceed $5,000.\5\
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    \5\ See Securities Exchange Act Release No. 77241 (February 26, 
2016), 81 FR 11311, 11325 n.50 (March 3, 2016) (SR-NYSEMKT-2016-30) 
(Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Adopting Investigation, Disciplinary, Sanction, and Other 
Procedural Rules Modeled on the Rules of the New York Stock Exchange 
LLC and Certain Conforming and Technical Changes) (noting that 
proposed NYSE American Rule 9216(b) would retain the Exchange's 
maximum fine for minor rule violations of $5,000).
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    The Exchange would add a new subsection (b) that would provide that 
Regulatory Staff designated by the Exchange shall have the authority to 
impose a fine pursuant to this Rule. Proposed Rule 9217(b) is identical 
to NYSE Arca Rule 10.9217(b).
    The Exchange would also add the following text as new subsection 
(c) to Rule 9217:

    Any member organization or covered person found in violation of 
a minor rule is not required to report such violation on SEC Form BD 
or Form U-4 if the sanction imposed consists of a fine not exceeding 
$2,500 and the sanctioned member organization or covered person has 
not sought an adjudication, including a hearing, or otherwise 
exhausted the administrative remedies available with respect to the 
matter. Any fine imposed in excess of $2,500 is subject to current 
rather than quarterly reporting to the Commission pursuant to Rule 
19d-1 under the Act.

    Except for substituting ``member organization or covered person'' 
for ``person or organization,'' proposed subsection (c) is identical to 
NYSE Arca Rule 10.9217(c).
    Finally, the current second paragraph of the preamble to Rule 9217 
would become new subsection (d). The text of proposed Rule 9217(d) 
would be unchanged.
Addition of Rule 2.1210 to the List of Rules Eligible for a Minor Fine
    The Exchange proposes to add Rule 2.1210 the list of rules in Rule 
9217 eligible for disposition pursuant to a minor fine under Rule 
9216(b) for its equities and options markets.
    Rule 2.1210, which was adopted in 2018,\6\ sets forth the 
requirements for persons engaged in the investment banking or 
securities business of a member organization or ETP Holder \7\ to be 
registered with the Exchange as a representative or principal in each 
category of registration appropriate to his or her functions and 
responsibilities as specified in Rule 2.1220.
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    \6\ See Securities Exchange Act Release No. 84388 (October 10, 
2018), 83 FR 52287 (October 16, 2018) (SR-NYSEAmer-2018-46) (Notice 
of Filing and Immediate Effectiveness of Amendments to Rules 
Regarding Qualification, Registration and Continuing Education 
Applicable to Member Organizations, Equity Trading Permit Holders, 
and American Trading Permit Holders).
    \7\ Since member organizations encompass ETP Holders, the 
current formulation in Rule 2.1210 is redundant. See note 4, supra. 
The Exchange will submit a proposed rule change to clarify Rule 
2.1210. The Exchange also notes that persons engaged in the 
investment banking or securities business of a member organization 
or ETP Holder would also be covered persons for purposes of the 
Exchange's disciplinary rules.
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    The Exchange proposes to add Rule 2.1210 to the list of rules in 
Rule 9217 eligible for disposition pursuant to a fine under Rule 
9216(b). Specifically, the Exchange proposes to add Rule 2.1210 to the 
``List of Equities Rule Violations and Fines Applicable Thereto'' under 
current subsection (b), titled ``Record Keeping and Other Minor Rule 
Violations,'' and to the ``List of Options Rule Violations and Fines 
Applicable Thereto'' under current subsection (ii) titled ``List of 
Options Rule Violations and Fines Applicable Thereto.'' The 
substantially similar version of Rule 2.1210 was adopted by the 
Exchange's affiliate New York Stock Exchange LLC (``NYSE'') in 2018 \8\ 
and is currently eligible for minor rule fines under the NYSE's version 
of Rule 9217.\9\ The Exchange believes that having the ability to issue 
a minor rule fine for failing to comply with the registration 
requirements of Rule 2.1210 would be consistent with and complement the 
Exchange's current ability to issue minor rule fines for other 
registration violations (e.g., Rule 2.21E (Employees of ETP Holders 
Registration) and Rule 341 (Approval of Registered Employees and 
Officers)). The Exchange further believes that the violations of the 
registration requirements are particularly suited to minor rule fines 
because minor fines provide a reasonable means of addressing violations 
that do not rise to the level of requiring formal disciplinary 
proceedings, while providing greater flexibility in handling certain 
violations.
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    \8\ See Securities Exchange Act Release No. 84336 (October 2, 
2018), 83 FR 50727 (October 9, 2018) (SR-NYSE-2018-44) (Notice of 
Filing and Immediate Effectiveness of Amendments To Rules Regarding 
Qualification, Registration and Continuing Education Applicable to 
Members and Member Organizations).
    \9\ See NYSE Rule 9217.
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    The Exchange further proposes to add fine levels for violations of 
Rule 2.1210 to both the equities and the options fine schedules. First, 
the Exchange would add proposed first, second and third level fines for 
violations of Rule 2.1210 to the equities fine schedule of $1,000 for 
the first violation, $2,500 for the second violation and $3,500 for the 
third and subsequent violations. The proposed fine levels would be the 
same as those in the Exchange's current Rule 10.9217(d)(2)(3) for 
violations of Rule 2.21E. Second, the Exchange would add proposed 
first, second and third level fines for violations of Rule 2.1210 to 
the options fine schedule of $1,000 for the first violation, $2,500 for 
the second violation and $3,500 for the third and subsequent 
violations. The proposed fine levels would be the same as those in the 
Exchange's current Rule 10.9217(ii)(11) for violations of Rule 341.
    The Exchange believes that the proposed change would strengthen the 
Exchange's ability to carry out its oversight and enforcement 
responsibilities in cases where full disciplinary proceedings are 
unwarranted in view of the minor nature of the particular violation.
Non-Substantive Clarifying Changes
    The Exchange also proposes the following non-substantive clarifying 
changes to the list equities and options rules eligible for a minor 
fine.
Equities Rules and Applicable Fines
     Under the heading ``List of Equities Rule Violations and 
Fines Applicable Thereto,'' the Exchange would delete ``(a)'', ``(b)'', 
``(c),'' ``(d)'' and ``(e)''.
     When the Exchange added the Rule 6800 Series to the list 
of minor rule violations, violations of the Rule 6800 Series and the 
corresponding fine levels were inadvertently placed under the legacy 
minor rules sections of Rule 9217 and omitted from current Rule 9217(b) 
(Record Keeping and Other Minor Rule Violations) and (d) (Fine 
Schedule).\10\ To address this oversight, the Exchange would amend 
current Rules 9217(b) and (d) as follows.
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    \10\ See Securities Exchange Act Release No. 89402 (July 27, 
2020), 85 FR 46203 (July 31, 2020) (SR-NYSEAMER-2020-52) (Notice of 
Filing and Order Granting Accelerated Approval of Proposed Rule 
Change Adding the Consolidated Audit Trail Industry Member 
Compliance Rules to the List of Minor Rule Violations in Rule 9217). 
Rules 9217(c) and (e) relate to legacy minor rules and associated 
fine levels.
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    First, the following bullet would be added under to current Rule 
9217(b) immediately after the newly added violations of Rule 2.1210: 
``Rule 6800--Series of the Office Rules--Failure to comply with the 
Consolidated Audit Trail Compliance Rule requirements.''
    Second, the following bullet would be added at the end of current 
Rule 9217(d)(2): ``Failure to comply with the Consolidated Audit Trail 
Compliance Rule requirements set forth in the Rule 6800 Series of the 
Office Rules.\2\'' Proposed footnote 2 would read ``For failures to 
comply with the Consolidated Audit Trail Compliance Rule requirements 
of the Rule 6800 Series, the Exchange may impose a

[[Page 78726]]

minor rule violation fine of up to $2,500. For more serious violations, 
other disciplinary action may be sought.''
    The proposed changes to current Rules 9217(b) and (d) are not 
intended to make substantive changes. Violations of the CAT Compliance 
Rules are currently eligible for minor rule fines and $2,500 is 
currently the maximum eligible fine. The text proposed to be added to 
Rules 9217(b) and (d) is identical to text in current Rules 9217(c) and 
(e). Proposed footnote 2 is identical to text at the end of current 
Rule 9217(e) (Legacy Minor Rules Fine Schedule) as well as that adopted 
by the Exchange's affiliates NYSE and NYSE Chicago, Inc.\11\ As 
discussed below, the same footnote would be added to the options list 
of minor rule violations as new footnote 4.
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    \11\ See NYSE Rule 9217(d) (``For failures to comply with the 
Consolidated Audit Trail Compliance Rule requirements of the Rule 
6800 Series, the Exchange may impose a minor rule violation fine of 
up to $2,500. For more serious violations, other disciplinary action 
may be sought.''); NYSE Chicago 10.9217(f), n. ** (same).
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     Under the first paragraph in current Rule 9217(d) (Fine 
Schedule), the Exchange proposes to add the clause ``, with the 
exception of fines pursuant to the Rule 6800 Series'' to the first 
sentence. As proposed, the sentence would read ``These fines are 
intended to apply to minor violations, with the exception of fines 
pursuant to the Rule 6800 Series.'' The proposed change would render 
the sentence in current subsection (d) identical to the sentence at the 
end of current subsection (c). In addition to making the Exchange's 
rules more internally consistent and more like those of its 
affiliates,\12\ the proposed change would clarify that minor rule fines 
for violations of the Rule 6800 Series cannot exceed $2,500. As 
discussed below, the Exchange would add the same clause to the same 
sentence that appears in the options rules section.
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    \12\ See, e.g., NYSE Rule 9217.
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     The Exchange proposes the following additional change to 
the equities fine schedule set forth in current Rule 9217(d):
    [cir] The number ``1'' would be deleted from the first heading 
``Trading Rule Violations Fine Levels.'' Underneath that heading, 
numbering would be replaced with bullets to conform with current 
subsections (a), (b) and (c) of Rule 9217 governing equities rules 
violations.
    [cir] The number ``2'' would be deleted from the second heading 
``Record Keeping and Other Minor Rule Violations Fine Levels.'' 
Underneath that heading, the Exchange would similarly replace numbering 
with bullets to conform with current subsections (a), (b) and (c) of 
Rule 9217 governing equities rules violations.
Options Rules and Applicable Fines
     Under the heading ``List of Options Rule Violations and 
Fines Applicable Thereto,'' the Exchange would delete ``(i),'' ``(ii)'' 
and ``(iii)''. The Exchange would also replace all numbering and 
lettering with bullets in the list of eligible options rules and 
recommended fine levels.
     Current subsection (i) would be renamed ``Trading Rule 
Violations and Options Floor Decorum'' to more accurately reflect the 
eligible listed rules.
     Under current subsection (ii) (Minor Rule Plan: Record 
Keeping and Other Minor Rule Violations), the Exchange would add a new 
footnote 4 at the end of current item 13 that relates to failure to 
comply with the Consolidated Audit Trail Compliance Rule requirements 
set forth in the Rule 6800 Series of the Office Rules. Proposed 
footnote 4 would be identical to footnote 2 described above that the 
Exchange would add to Rule 9217(d)(2) in the equities rules section.
     Similar to the change described above for the equities 
list, the Exchange would add the clause ``, with the exception of fines 
pursuant to the Rule 6800 Series'' to the first sentence in the second 
paragraph under current subsection (iii) (Minor Rule Plan: Recommended 
Fine Schedule).
     The Exchange would move footnote 1 that appears in the 
Options Floor Decorum and Minor Trading Rule Violations fine levels 
under current subsection (iii) to the end of the options list rule with 
the other footnotes.
     The Exchange would delete ``(ii)'' before ``Record Keeping 
and Other Minor Rule Violations.''
     Finally, the Exchange would add a reference to proposed 
footnote 4 at the end of current item 13 under ``Record Keeping and 
Other Minor Rule Violations.'' In addition, ``Up to $2,500.00'' would 
be deleted from the chart as redundant of proposed footnote 4.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\13\ in general, and furthers the objectives of Section 
6(b)(5),\14\ in particular, because it is designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, to foster cooperation and coordination 
with persons engaged in facilitating transactions in securities, to 
remove impediments to, and perfect the mechanism of, a free and open 
market and a national market system and, in general, to protect 
investors and the public interest.
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    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(5).
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Preamble to Rule 9217
    The Exchange believes that harmonizing the preamble to Rule 9217 
with that of its affiliates would remove impediments to and perfect the 
mechanism of a free and open market and a national market system by a 
providing greater harmonization between Exchange rules and those of its 
affiliates in connection with minor rule fines, thereby fostering 
cooperation and coordination with persons engaged in facilitating 
transactions in securities and will remove impediments to and perfect 
the mechanism of a free and open market and a national market system. 
Moreover, by adopting the same applicable minor rule standards for 
violations of those standards as its affiliates, the Exchange would 
promote regulatory consistency.
Addition of Rule 2.1210 to the List of Eligible Rules
    Minor rule fines provide a meaningful sanction for minor or 
technical violations of rules when the conduct at issue does not 
warrant stronger, immediately reportable disciplinary sanctions. The 
inclusion of a rule in Rule 9217 does not minimize the importance of 
compliance with the rule, nor does it preclude the Exchange from 
choosing to pursue violations of eligible rules through formal 
disciplinary action if the nature of the violations or prior 
disciplinary history warrants more significant sanctions. Rather, the 
Exchange believes that the proposed rule change will strengthen the 
Exchange's ability to carry out its oversight and enforcement 
responsibilities in cases where full disciplinary proceedings are 
unwarranted in view of the minor nature of the particular violation. 
The option to impose a minor rule sanction gives the Exchange 
additional flexibility to administer its enforcement program in the 
most effective and efficient manner while still fully meeting the 
Exchange's remedial objectives in addressing violative conduct. The 
proposed rule change is thus designed to prevent fraudulent and 
manipulative acts and practices because it will provide the Exchange 
the ability to issue a minor rule fine for violations of the

[[Page 78727]]

registration requirements set forth in Rule 2.1210 where a more formal 
disciplinary action may not be warranted or appropriate. In addition, 
the Exchange believes that adding rules based on the rules of its 
affiliate to the Exchange's minor rule plan would promote fairness and 
consistency in the marketplace by permitting the Exchange to issue a 
minor rule fine for violations of substantially similar rules that are 
already eligible for minor rule treatment, thereby harmonizing rules 
eligible for minor rule fines across affiliated exchanges.
    The Exchange further believes that the proposed amendments to Rule 
9217 are consistent with Section 6(b)(6) of the Act,\15\ which provides 
that members and persons associated with members shall be appropriately 
disciplined for violation of the provisions of the rules of the Act, 
the rules and regulations thereunder, and the rules of the exchange, by 
expulsion, suspension, limitation of activities, functions, and 
operations, fine, censure, being suspended or barred from being 
associated with a member, or any other fitting sanction. As noted, the 
proposed rule change would provide the Exchange ability to sanction 
minor or technical violations of proposed Rule 2.1210 pursuant to the 
Exchange's rules. Finally, the Exchange also believes that the proposed 
changes are designed to provide a fair procedure for the disciplining 
of members and persons associated with members, consistent with 
Sections 6(b)(7) and 6(d) of the Act.\16\ Rule 9217 does not preclude a 
member organization or covered person from contesting an alleged 
violation and receiving a hearing on the matter with procedural rights 
through a litigated disciplinary proceeding.
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    \15\ 15 U.S.C. 78f(b)(6).
    \16\ 15 U.S.C. 78f(b)(7) and 78f(d).
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Non-Substantive Clarifying Changes
    The Exchange believes that the proposed reorganization, renaming 
and replacement of numbers with bullets in Rule 9217 and related 
changes described above would add clarity and consistency to the 
Exchange's rules. The Exchange believes that adding such clarity would 
also be consistent with the public interest and the protection of 
investors because investors will not be harmed and in fact would 
benefit from increased clarity, thereby reducing potential confusion. 
In addition, the Exchange believes that moving text to achieve internal 
consistency and address inadvertent errors relating to violations of 
the CAT Compliance Rules also adds clarity to the Exchange's rules. 
Finally, the Exchange believes that harmonizing the preamble to Rule 
9217 with that of its affiliates would promote fairness and consistency 
in the marketplace by eliminating differences and harmonizing language 
related to minor rule treatment of similar rule violations across 
affiliates. The proposed change is not intended to make any substantive 
change to the applicability of minor rule fines to violations of the 
CAT Compliance Rules or the amount of those fines.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed change is not 
designed to address any competitive issue but rather to update the 
Exchange's rules to strengthen the Exchange's ability to carry out its 
oversight and enforcement functions and deter potential violative 
conduct and to align the Exchange's rule setting forth violations 
eligible for a minor rule fine more closely with that of its 
affiliates.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NYSEAMER-2022-13 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEAMER-2022-13. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (http://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for website viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE, Washington, DC 
20549 on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-NYSEAMER-2022-13 and should be submitted 
on or before January 12, 2023.

IV. Commission's Findings and Order Granting Accelerated Approval of 
Proposed Rule Change

    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a national securities exchange.\17\ In 
particular, the Commission finds that the proposed rule change is 
consistent with Section 6(b)(5) of the Act,\18\ which requires that the 
rules of an exchange be designed to promote just and equitable 
principles of trade, to remove impediments and to perfect the mechanism 
of a free and open market and a national market system, and, in 
general, to protect investors and the public interest. The Commission 
also believes that the proposal is consistent with Sections 6(b)(1) and 
6(b)(6) of the Act \19\ which require that the rules of an exchange 
enforce compliance with, and provide appropriate discipline for, 
violations of Commission and Exchange rules. Finally, the Commission 
finds that the

[[Page 78728]]

proposal is consistent with the public interest, the protection of 
investors, or otherwise in furtherance of the purposes of the Act, as 
required by Rule 19d-1(c)(2) under the Act,\20\ which governs minor 
rule violation plans.
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    \17\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \18\ 15 U.S.C. 78f(b)(5).
    \19\ 15 U.S.C. 78f(b)(1) and 78f(b)(6).
    \20\ 17 CFR 240.19d-1(c)(2).
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    As stated above, the Exchange proposes to (1) make certain 
revisions to the preamble to Rule 9217 (Violations Appropriate for 
Disposition Under Rule 9216(b)); (2) add Rule 2.1210 (Registration 
Requirements) to the list of minor rule violations in Rule 9217 and 
associated fine levels for its equities and options markets; and (3) 
make certain non-substantive clarifying changes to Rule 9217.
    The Commission believes that Rules 9216(b) and 9217 are an 
effective way to discipline a member for a minor violation of a rule. 
More specifically, the Commission believes that the proposed revisions 
to the preamble of Rule 9217 are consistent with the Act because they 
would add clarity to the Exchange's rules and may help the Exchange's 
ability to better carry out its oversight and enforcement 
responsibilities. The proposed revisions to the preamble of Rule 9217 
also would align Rule 9217 with the rules of the Exchange's affiliates. 
The Commission believes that the proposed addition of Rule 2.1210 
(Registration Requirements) to the Exchange's list of current minor 
rule violations provides a reasonable means of addressing violations 
that do not rise to the level of requiring formal disciplinary 
proceedings, while providing greater flexibility in handling certain 
violations. Furthermore, the Commission believes that amending the 
associated fine schedule is consistent with the Act because it may help 
the Exchange's ability to better carry out its oversight and 
enforcement responsibilities by levying appropriate fines for minor 
violations of the rules included in Rule 9217, including minor 
violations of Rule 2.1210. Finally, the Commission believes that the 
Exchange's proposal to make certain non-substantive changes to Rule 
9217 are consistent with the Act because these changes will add clarity 
to the Exchange's rules.
    In approving the proposed rule change, the Commission in no way 
minimizes the importance of compliance with the Exchange's rules and 
all other rules subject to fines under Rules 9216(b) and 9217. The 
Commission believes that a violation of any self-regulatory 
organization's rules, as well as Commission rules, is a serious matter. 
However, Rules 9216(b) and 9217 provide a reasonable means of 
addressing rule violations that may not rise to the level of requiring 
formal disciplinary proceedings, while providing greater flexibility in 
handling certain violations. The Commission expects that the Exchange 
will continue to conduct surveillance with due diligence and make a 
determination based on its findings, on a case-by-case basis, whether a 
fine of more or less than the recommended amount is appropriate for a 
violation under Rules 9216(b) and 9217 or whether a violation requires 
formal disciplinary action.
    For the same reasons as discussed above, the Commission finds good 
cause, pursuant to Section 19(b)(2) of the Act,\21\ for approving the 
proposed rule change prior to the thirtieth day after the date of 
publication of the notice of the filing thereof in the Federal 
Register. The proposal will assist the Exchange in preventing 
fraudulent and manipulative practices by allowing the Exchange to 
adequately enforce compliance with, and provide appropriate discipline 
for, violations of Exchange rules. Moreover, the proposed changes raise 
no new or novel issues. Accordingly, the Commission believes that a 
full notice-and-comment period is not necessary before approving the 
proposal.
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    \21\ 15 U.S.C. 78s(b)(2).
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V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the Act 
\22\ and Rule 19d-1(c)(2) thereunder,\23\ that the proposed rule change 
(SR-NYSEAMER-2022-13) be, and hereby is, approved on an accelerated 
basis.
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    \22\ 15 U.S.C. 78s(b)(2).
    \23\ 17 CFR 240.19d-1(c)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\24\
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    \24\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022-27791 Filed 12-21-22; 8:45 am]
BILLING CODE 8011-01-P


